When will government decide to cut spending?
Former Reagan economic advisor Art Laffer weighs in
- Duration 5:03
- Date Feb 12, 2013
Former Reagan economic advisor Art Laffer weighs in
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Welcome everybody I'm Neil Cavuto at all it took was a report today out of treasure of a surprising budget surplus for the month of January.
To apparently take the pressure off this president to cut spending -- cold night it February.
Democrats quickly seizing on the data as proved that deficits are getting better thanks -- higher taxes so really needs to go packing spending.
Not the president to apparently says that he is -- -- is all -- done.
But he's already come up political support trillion dollars of budget cuts -- mission kind of accomplished this year nevermind that is sports real -- over ten years and it will still leave us.
Five trillion more box in debt over the same ten years.
Are we really saying then that it could've been worse it could have been behind treatable well more or less yes.
So let's cut to the chase don't expect much -- that it.
Because now is not the time to cut.
You gotta ask yourself what is the time to cut both parties what is the time to cut it the economy is still too proud of the cut spending why is it perfectly -- to raise taxes.
So more revenues good less government bad.
That's there that it is time to seize the moment -- -- the spending right now.
But something tells me that this president not now because it is very clear Barack Obama neither sides as the urgency to cut spending agreed on the need to -- Not when he like Nancy Pelosi doesn't really even see a spending problem.
But still a revenue problem that satisfied by hiking taxes and again it.
Because now is not the time to be -- editing which I think kind of says everything.
May use the argument and I think well reasoned argument coming into office for years ago because reasonably couldn't afford to do that.
Six trillion dollars in debt in four years later we can't afford not to do now.
Seriously then when is the right time to cup wins the right time to get serious.
Cuts are never easy but ignoring the need for them doesn't make the teacher any easier just as Maggie Thatcher.
Who -- a revolt in a wrong party when she took a -- -- government spending at a height of a reception and our own aides feared she'd be history only to weather that it.
And end up making history.
That's OK and I didn't think crap about this -- that we haven't even know uncle Bobby and that is.
Respectful of them they must -- that -- -- the boom that followed the unprecedented boom that followed.
For season such a moment then Maggie that took forever became known as the Iron Lady.
For likely pundit on his big moment tonight Barack Obama has little to fear he will ever be called.
The Iron Man.
Believe I hope that I am wrong but art -- I suspect that -- and what say you.
I say that's the best monologue I've heard since Johnny Carson and way better than Jay Leno loud and how are only able you are all legal guys are great you have no that was sent to finish your point.
I love the spending cut idea I don't think Obama's gonna do it but.
I remember when Thatcher did it and it really did work you're completely right.
The reason we have a bad economy -- Is -- large part because of the spending that in spite of it.
So if if it wasn't proper and and and not the ideal moment to cut spending in the midst of recession -- -- it -- that -- -- there -- -- program.
An argument to me it made.
And then a year later it was still kind of Dicey then -- is another year after that the recovery itself was still Dicey.
Just the right time to cut and that if that's a risk doing so in the midst of the worst of all economic environment arguing that the longer term gains would more than justified.
The -- quite.
Quite -- short term -- The real serious thing is -- Government spending is taxation it really is government doesn't create resources -- re distribute resources.
When you should cut unnecessary spending is in the middle of -- recession I know all these cave in to play that's not true but it is true.
The of this spending is taxation that you cannot tax in the economy out of a recession -- just playing -- -- there.
-- the boom their way out of it then there is some wild let me get into this with citizen of the Melissa Francis and a second on about.
That that the flip side it is you know growing out of it whether that's gonna help and whether the first report we got out of treasury indicates that -- -- of that but.
You can't get out along right I mean you can't hang your hat on tax hikes and you can't hang your hat on on hoping and praying for another Internet boom.
You can't I mean but what you have to do is yet to do a low rate flat tax shift spending restraint sound money.
Free trade -- animal regulation and then get out of the way the economy will get itself out of the recession depression.
That's what it's supposed to do governments aren't the job creators governments are basically -- set the rules set the stage and let the private sector -- -- That's unfortunate not what this guy's doing.
I hope somewhere along -- we have a boom in spite of all these bad policies and we probably well I mean maybe not a boom but we will come out of it.
But that's in spite of these policies not because of them.
We shall see our tanks could see him my friend Ellen it's great seeing you -- by the -- -- -- magnificent.
Don't drug humor me now and yet what I love that I had to find her spot and but our -- -- thank you.